502AC: Maryland Subtraction for Contribution of Artwork (2025)
Maryland · Comptroller of Maryland · Used for tax years 2025
Maryland Form 502AC calculates the Maryland-only subtraction for donating your own artwork to a Maryland museum. It documents your qualifying income, the museum’s acceptance, and the artwork’s value, and is attached to Form 502 or Form 505.
Who files this form
Use Form 502AC to claim the 2025 Maryland subtraction for donating your own artwork to a Maryland museum. You qualify if:
- At least 50% of your income for the current or prior year comes from selling your own artwork.
- The museum is located in Maryland, is open to the general public, and has accepted your artwork.
Part A tests the income requirement using federal adjusted gross income plus Maryland additions and gross income from sales of your own artwork.
If you file a joint Maryland return, this subtraction can reduce only the qualifying artist’s taxable income. Remove any spouse’s income included in the amounts entered on lines 1 and 4, and attach a schedule showing the adjustment.
What you'll need
Attach these items to your Maryland return:
- A completed Form 502AC.
- A certified appraisal verifying the artwork’s fair market value, prepared by an independent appraiser.
- Written acceptance from the museum.
- If applicable, a schedule showing the removal of your spouse’s income from lines 1 and 4 on a joint return.
To complete the form, you will also need your income figures for Part A, the museum’s name and address, and any amounts attributable to the donated artwork included in your federal or state itemized deductions.
How to file
Attach Form 502AC and the required supporting documents to Form 502 for residents or Form 505 for nonresidents. Check the box showing which return you are filing. Print using blue or black ink only.
- Complete Part A to determine whether you meet the income requirement. Follow the instructions for completing the prior-year lines if needed.
- Complete Part B with the museum’s name and address and answers to questions 7 through 9.
- If eligible, complete Part C. Enter the appraised fair market value on line 10, the applicable deduction amounts on line 11, and the difference on line 12. Copy line 2 to line 13, then enter the smaller of lines 12 and 13 on line 14.
- Report the line 14 subtraction on line m of Form 502SU or Form 505SU.
The supplied text does not give a mailing address or e-filing instructions.
Common mistakes
- Claiming the subtraction without qualifying. You do not qualify if line 2 exceeds line 3 and line 5 exceeds line 6.
- Overlooking the museum requirements. A “No” answer to any question in Part B means you cannot claim the subtraction.
- Leaving out required attachments. Include the completed form, independent appraisal, and written museum acceptance with your return.
- Including a spouse’s income in the qualifying artist’s figures. For a joint return, remove any spouse’s income included on lines 1 and 4 and attach the adjustment schedule.
- Failing to reduce the artwork’s value for deduction amounts. Enter amounts attributable to the donated artwork in your federal or state itemized deductions on line 11.
- Claiming more than the permitted amount. Line 14 must be the smaller of line 12 or line 13.
Questions people ask
Can I qualify based on last year’s artwork sales?
Yes. The qualifying guidelines allow you to meet the 50% income requirement using the current year or the prior year.
Does the museum have to be in Maryland?
Yes. It must also be open to the general public and must have accepted your donated artwork.
Can I claim the full appraised value?
Not necessarily. Part C reduces the appraised value by applicable deduction amounts entered on line 11. Your subtraction is then limited to the smaller of that reduced value or the amount from Part A, line 2.
Where can I get more information?
Visit marylandcomptroller.gov or call 1-800-638-2937. From Central Maryland, call 410-260-7980.